trending Market Intelligence /marketintelligence/en/news-insights/trending/cyuI7wxNulx2eyxnmF3ZPQ2 content esgSubNav
In This List

Huayou to acquire 11% stake as AVZ launches A$15M fundraising

Blog

Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings

Blog

Insight Weekly: LNG exports surge; investors unfazed by inflation; neobanks drive VC funding

Blog

Essential Metals Mining Insights November 2021

Blog

[Infographic]: 2021 World Exploration Trends


Huayou to acquire 11% stake as AVZ launches A$15M fundraising

AVZ Minerals Ltd. intends to raise A$15 million, with strategic investor Huayou International Mining (Hong Kong) Ltd. agreeing to invest A$13.0 million in the company, according to an Aug. 10 news release.

The funds will mainly be used for drilling and initial metallurgical test-work programs at the Manono lithium project in the Democratic Republic of the Congo and for ongoing corporate and administration costs.

The company is also planning a significant diamond and reverse circulation drilling program starting late in the third quarter or early in the fourth quarter to define mineral resources to a JORC 2012 standard by early 2018.

Huayou will secure an 11% interest in the company against the investment by acquiring 186 million shares at 7 Australian cents per share, with 186 million attaching options exercisable at 10 cents apiece, expiring 20 months after the issue.

Huayou, a wholly owned unit of Shanghai-listed nonferrous metals smelter Zhejiang Huayou Cobalt Co. Ltd, will also have the right to appoint a nominee to AVZ's board.

AVZ intends to raise A$2.0 million from institutional and sophisticated investors by issuing up to 28,285,714 shares at 7 cents apiece, with an option attached to each share.

Hartleys Ltd. will act as lead manager.